As of writing, ETH is trading at $83.00, representing a 17.8 percent drop on a 24-hour basis. Just three weeks ago, it was teasing a short-term bullish reversal above $200.

That key support (now resistance), however, was breached on Nov. 14, as bitcoin’s drop below the crucial support of $6,000 dashed hopes of a major bullish reversal, leading to broad-based risk aversion in the cryptomarkets.

Ether prices have dropped close to 60 percent in the time since and are currently down a staggering 94 percent from the record high of $1,431 hit in January.

The ETH/USD short positions on the cryptocurrency exchange Bitfinex rose to a record high above 340,000 soon before press time. Notably, shorts have risen by 183 percent in the last three weeks. Meanwhile, long positions have dropped to the lowest since Sept. 12.

Moreover, ether has found acceptance below $102.20 (low of the doji candle), meaning the sell-off from $200 has resumed.

As a result, ETH may extend the decline toward the next major support lined up at $59.00 (March 2017).

That said, the momentum may weaken somewhat, as the 14-week relative strength index (RSI) is reporting oversold conditions for the first time December 2016./coindesk.com